The Northern Territory Government’s fuel watchdog has written to 37 service stations demanding explanations for their above average prices.
Treasury has been monitoring average petrol and diesel costs across the Territory and asked national fuel task-force representative Jimmy Kiploks to investigate those with higher than expected prices from April 4 to 9.
At least twenty servos from Darwin, seven in Alice Springs, two in Tennant Creek and seven in Katherine must now provide evidence to back their pricing or else face the possibility of fines or prosecution.
For example, Tennant Creek Service Station had an average diesel price of $3.45 per litre versus the average of $3.28 per litre during the April 4 to 9 period.
On April 9 three Alice Springs servos charged $3.41 for diesel, while the On the Run charged just $3.23.
“Sending out these ‘please explains’ shows the industry we’re closely monitoring – so if people want to take advantage, we’re taking notice,” NT Treasurer Bill Yan said.
“There could be some legitimate reason, but they need to be able to explain that.”
Over a two-week period the government has also carried out 147 compliance checks on service station pricing.
Mr Yan said the NT’s fuel supply remained secure for now.
“Our supplies haven’t changed, we’re still seeing vessels coming in and we’ve got that confirmed for the next three weeks,” Mr Yan said.
But with diesel in the NT averaging $3.35 per litre – and over $4 in some locations – the price pain is widespread.
“We rely on diesel to get things done in the NT – we have a lot more links in our freight networks than other states so those networks are feeling it quite hard,” Mr Yan said.
“As costs increase to transport and construction, these then get passed on to retailers and supermarkets, and they pass it on to the consumer.”
Mr Yan supported calls for the federal government to enact temporary levies to ease pressure on industries.
He also acknowledged Master Builders NT request for more flexibility in government contracts, to allow for cost increases where impacts were outside contractor control.
“The Department of Infrastructure and Logistics is working with all those contractors doing work with us, as some have rise and fall built into their contracts and others do not,” he said.
With major road repairs underway following previous months’ severe weather, Mr Yan said it was “a double whammy” to the upcoming budget.
“Flood events, cyclones, and significant damage to our roads – and now we have to deal with the fuel costs being extra expensive, so it is going to be felt down the line.”
Extracted in full from: https://www.ntnews.com.au/news/politics/nt-service-stations-ordered-to-explain-high-fuel-prices-or-face-possible-penalties/news-story/78f4cb16f7121a709318baddee27d5ed
